Shimla – As the financial landscape of Himachal Pradesh unfolds in the Budget Estimates for the fiscal year 2023-24, the state reveals impressive figures in tax and non-tax revenues, underlining its commitment to economic stability and growth.
According to the BE of FY 2023-24, the tax revenue, including central taxes, is projected to reach ₹21,504 crore. This marks a substantial increase from ₹18,750 crore in the Revised Estimates (RE) of FY 2022-23 and ₹12,301 crore in FY 2019-20, showcasing a consistent upward trajectory.
Non-tax revenue, a crucial component encompassing interest receipts, dividends, and profits from public sector undertakings, is expected to witness a notable surge. Projections indicate a rise to ₹3,447 crore in FY 2023-24 (BE), reflecting a commendable 14.02 percent increase from ₹3,023 crore in FY 2022-23 (RE). Economic services emerge as the primary contributor to the non-tax revenue receipts, emphasizing their pivotal role in the state’s revenue composition.
One noteworthy aspect is the static nature of the grant from the center, which remains at 25 percent of the total receipts of the state. Financial projections suggest a decrease of approximately 12.4 percentage points in the grant from the center in FY 2023-24 (BE) compared to FY 2021-22 (A). State revenue receipts, standing at 18.32 percent of the Gross State Domestic Product (GSDP) for FY 2023-24 (BE), showcase a strategic fiscal approach compared to 21.67 percent in FY 2021-22 (A).
Economic services, particularly in electricity, gas, and water supply, maintain their prominence, contributing 4.6 percent to the total receipts of the state in FY 2023-24 (BE).
Delving into expenditure, the total expenditure of the State Government for FY 2023-24 (BE) is estimated at ₹53,413 crore, with a significant portion of ₹42,704 crore earmarked for revenue expenditure (79.95 percent). Capital expenditure follows at 9.74 percent, illustrating a balance between immediate operational needs and long-term investments.
A significant aspect of the fiscal plan is the committed expenditure, standing at ₹30,400 crore, constituting 56.92 percent of the total expenditure and 14.66 percent of the GSDP for FY 2023-24 (BE).
The debt-to-GSDP ratio shows a positive trend, decreasing to 37.02 percent in FY 2021-22 from 40.23 percent in FY 2020-21, indicating responsible fiscal management.
Research and Development (R&D) allocations emphasize the state’s focus on innovation, with ₹1024 crore earmarked for the revenue account and ₹93.21 crore for the capital account in FY 2023-24.
